Phase 2 Risk Assessment Methodologies

3.4 Summarise the types of risks that may be involved in assessment in own area of responsibility

This paper discusses three risk analysis methodologies, specifically, MSRAM, OCTAVE, and CRAMM and provides a detailed description of each and how they incorporate risk into a platform for decision makers to use in their endeavors to prevent, protect, mitigate, respond, and in recovery measures as part of the risk assessment and management processes.

Risk management is a process for identifying, assessing and prioritizing risks of different kinds. Once the risks are identified, the risk manager will create a plan to minimize or eliminate the impact of negative events. A variety of strategies is available, depending on the type of risk and the type of business. There are a number of risk management standards including those developed by the Project Management Institute the International Organization for Standardization the National Institute of Science and Technology and actuarial societies. Organizations uses different strategies in proper management of future events such as risk assumption, risk avoidance,

Risk management or more know as risk assessments by Dimensions are about identifying risks and finding the most suitable way of making them as safe as possible for the individual service users, service user and in

3.4 Summarise the types of risks that may be involved in assessment in own area of responsibility

The purpose of risk assessment is not to remove risks, but to take reasonable steps to reduce them. The process involves looking at the risk, and considering what can be done to make it less likely that the risk will develop into a reality. This can be done through implementing policies and codes of practice, acting in individual’s best interests, fostering culture of openness and support being consistent, maintaining professional boundaries and following systems for raising concerns.

Importantly, the quality of the risk assessment is dependent on the quality of the information available. Sometimes the client’s situation requires urgent actions, and a complete assessment is not possible (Bland et al., 2009, p. 144).

Risk management, control identification, and selection processes are important, specifically in this organization. It is naïve of a

Carroll, R.L. (2009). Risk management handbook for health care organizations. San Francisco, CA: Jossey-Bass. Retrieved from http://newclassroom3.phoenix.edu

Proper survey and the complete scenario is taken into consideration about risks in the organization which enables the proper risk assessment. Potential of each threat or risk is evaluated and graded in order to reduce the impact of the risks or reduced the probability of its occurrence.

Retrospective risk assessment deals with problems that have happened or problems that almost occurred. With this method, looking back on what caused the problem to occur or almost occur are assessed. Then ideas are gathered to help prevent these problems from happening again. This is where risk managers are essential to a healthcare organization. This process was created and is used today to lessen the chances of financial risks to the healthcare organization now and long-term. This is done by trying to limit the liability throughout the system of the organization, whether this is staff, goals, rules, equipment, or etc. This is a very complex process and is much deeper than finding a single employee that was involved and blaming them for the fault. With retrospective risk assessment the uses of analytics are extremely important to figure out what has caused a problem and what can be done to prevent it from happening again or any slight alternatives to the problem.

It will grade risks based on its seriousness and likelihood of happening in the business.

Align strategy and corporate culture: The WP management team will create better risk awareness by using ERM. Also, a positive and open culture with respect to risk and risk management will be created as well. This will make every people at every level in WP to participate into the risk management activity which will be a huge benefit to WP and its employees.

Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities. (Lecture notes)Risk Management is also described as 'all the things you need to do to make the future sufficiently certain'. (The NZ Society for Risk Management, 2001)

One well accepted description of risk management is the following: risk management is a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on and communicating risk issues. In order to apply risk management effectively, it is vital that a risk management culture be developed. The risk management culture supports the overall vision, mission and objectives of an organization. Limits and boundaries are established and communicated concerning what are acceptable risk practices and outcomes. Since risk management is directed at uncertainty related to future events and outcomes, it is